Category: Dr. Rick Nason

I had a pleasant phone call with one of my friends from graduate school earlier this week. Is was great to reminisce about past school times and catch up on classmates I lost touch with over the years.

There is a poignancy in looking back at where we all started, the journeys taken, and the bumps as well as the jumps that we had along the way. These are the moments when we reflect on what it takes to be successful. We are often surprised by the friends and acquaintances we thought were destined for greatness, chose rather mediocre careers, while those we thought fated for mediocrity became game changers. Why is it that we are so often wrong in our assessment of people and their career prospects?

A wide variety of studies have suggested that success in school has a limited correlation to success in life. In fact, there is a fair bit of evidence that high achievement in academia, specifically professional programs, has a negative correlation with success in one’s chosen career.

I would like to put forward a hypothesis for this; it’s not complicated.

School rewards and reinforces the concept that success is linked to knowing stuff. Calculate the flight of the ball to four decimal places, circle the correct answer on the multiple-choice quiz, write down the proper year for the Battle of Hastings, regurgitate in an essay the professor’s pet theory for the implications of social media. These are all complicated things – using the system’s thinker definition of complicated things. The world in which humans interact is complex.

In our Google-search, smart-phone-at-hand world, mastery of complicated thinking is a commodity. Knowledge is a commodity. Furthermore, knowledge is a commodity with an infinite and readily available supply. A readily available, easily obtainable commodity, is not worth much – if anything at all.

What is valued is the ability to deal with complexity – things that emerge with no predictability.

What is valued is the ability to interact with others and create emergence, to create the next viral idea, to dream up a novel way of using something, or develop a creative piece of art or something beautiful or inspiring.

What is valued are things that cannot be put into a book.

What is valued are ideas that cannot be tested on a multiple-choice exam.

What is valued is the ability to sell and convince others and to conversely be smart enough to also be convinced by others when their ideas are superior.

What is valued is the ability to think, dream, create, act, implement and take risks.

It’s not complicated; it’s complex! Given that, is focusing on “smarts” in school really that smart?

Dr. Rick Nason is an associate professor of finance in the Rowe School of Business at Dalhousie University. Rick’s research interests are enterprise risk management, complexity, financial crisis, financial risk assessment, derivatives and hedging strategies. His recent book, It’s Not Complicated, published in 2017, offers a paradigm shift for business professionals looking for simplified solutions to complex problems.

Abbotsford House, The home and library of Sir Walter Scott. Scottish Borders, near Melrose, on the south bank of the River Tweed

Two millennia ago, Marcus Tullius Cicero declared that “A room without books is like a body without a soul.”

In the 20th century, Ernest Hemingway maintained, “There is no friend as loyal as a book.”

The narrative of humanity is recorded on the pages of books, whether in print or digital format. We turn to books because they challenge, motivate, entertain and educate. Best of all, they connect us in ways that circumvent the constraints of time and location. Which is why book clubs have become ubiquitous in our age of technology. After all, doesn’t everyone belong to a book club?

Welcome to CFAME Connection’s new column, “What are you reading now?” a result of a telephone discussion with Rick Nason a few months ago. We lead busy lives with full agendas and competing interests and responsibilities; reading often becomes relegated to in-between spaces of time. As Frank Zappa mused, “So many books, so little time.”

Books stimulate conversations, as demonstrated by the responses from CFAME Connection contributors:

Rick Atherton: I have two books on my desk, which are focused on Operational Excellence: Sapiens: A Brief History of Humankind by Yuval Noah Harari and What To Do When Machines Do Everything by Malcolm Frank, Paul Roehrig, & Ben Pring

Michael Ford:I am balancing Dr. Rick Nason’s book It’s Not Complicated: The Art and Science of Complexity for Business Success with a biography on Leonardo da Vinci.

John Luchetti: Since finishing my MBA in 2015, with no assignments, no required reading, no virtual classes to attend, no exams – what to do? I’ve been buying books. I have biographies to read from Alexander the Great to Elizabeth Smart – Clinton, Da Vinci, Jobs, Lama, Mandela, and Malala.

Steen Madsen: Currently I am reading an older science fiction book, Consider Phlebas: A Culture Novel by Iain M. Banks. I had heard that Elon Musk is a big fan of Iain Banks and used the book’s title as one of the names for his remote-landing-drones for the Falcon9 rocket-returns to earth. If you like science fiction, this is a must read. Very well written and the work holds up well through time.

Jim Spitali: Leadership BS: Fixing Workplaces and Careers One Truth at a Time, by Jeffry Pfeffer. So far, it is an interesting read and highlights some of the myths of leadership. I also enjoy many Harvard Business Review articles. I find them quite insightful.

Yvonne Thevenot: I just finished reading The Millionaire Next Door Thomas J Stanley, William D Danko. A group of colleagues at work decided we would all read the same book and chat about it. While I would not have ever chosen this book to read myself, I enjoy the community sense of trying something new by tagging along with someone else’s suggestion. It takes me outside my comfort zone and exposes me to ideas and opportunities I would not have had otherwise. Now, that being said, I can’t say I found the book particularly engaging, but I did finish it, learned some interesting things, and had fun in sharing the ideas with my colleagues. The next book on my list is The Gift of Mentoring, by Doug Lawrence and Emily Hunter. I have had the privilege of meeting Doug through my mentoring certification and have a world of respect for what he is doing for the professionalization of mentoring and so am eager to see how his views and values are captured in print!

Binod Sundararajan: I am currently, slowly, plowing through a book called The Society of Mind, by Marvin Minsky. It is heavy reading, but it is brilliant.

Dr. Carolan McLarney: This past summer I read Tolstoy, Dante, Elizabeth George and Tom Robbins. My reading list has moved on to my Christmas gifts: The Art Thief (N. Chaney), The Economic Consequences of the Peace (J.M. Keynes), Finding Piglet (adapted from A.A. Milne), The History of Bees (M. Lunde) and In Memory’s Kitchen: A Legacy from the Women of Terezin (Berenbaum & Silva)

Dr. Rick Nason: To find out, stay tuned for the next post, on “What are you reading now?”

We invite you to join the conversation and share books that have inspired your journey.

Rebecca Budd
Blog Coordinator

P.S. I’ve been reading, The Hidden Life of Trees: What They Feel, How They Communicate—Discoveries from a Secret World by Peter Wohlleben and have discovered that trees communicate as communities. I continue to learn…

“Adaptive managers must become experts of communication. Like professional athletes seeking to improve every aspect of their performance, they must embrace all types of feedback to grow and learn.”

Alain Henry MBA(FS) Class of 2014

Organizations continually face new challenges as the environments in which they operate evolve and change. This evolution can take many forms and directions.

I agree with Rick Nason that managers must possess an adaptive mindset if they wish to succeed in these shifting environments. Organizations of all sizes must embrace complexity and set a clear path for managers at all levels to acquire and possess the right leadership tools to manage this complexity, so they can proactively execute the corporate strategy rather than passively react to a changing environment and lose their focus.

I firmly believe that effective top-down and bottom-up communication is critical in establishing the right foundation allowing adaptive managers to thrive in a complex world. Taking the time to instill an environment that embraces open communication and that promotes feedback loops requires first and foremost executive support. This support is necessary as linking all levels of management to a common goal: One that breaks silos and challenges legacy knowledge can only nurture this evolution if executives practice what they preach. Adaptive managers must become experts of communication. Like professional athletes seeking to improve every aspect of their performance, they must embrace all types of feedback to grow and learn. This feedback must come from multiple sources (peers, direct reports, supervisors) and effective managers will seek and engage all stakeholders early and often to receive this valued feedback, which I view as “small gifts”.

Adaptive managers must also promote a culture of “curiosity”. Empowering individuals within their teams to question the status quo or view the organization through an external lens, one that is disruptive to the way the organization operates. These discussions can only be beneficial. Allowing team members to innovate/create or problem-solve amongst themselves without the direct influence of management fosters a test-learn-adapt environment, one that is conducive to continuous and relevant improvements while remaining focused on the clients’ evolving needs (thus avoiding the Kodak fate).

Each journey is unique and often times beyond the comprehension of the ‘complicated’ thinker.

“It is important to first realize that complex tasks cannot be completed by following a recipe or a set of instructions, or even an extensive list of rules and regulations.”

Rick Nason, It’s Not Complicated: The Art and Science of Complexity in Business

In a recent post, Joyline Makani and Martine Durier-Copp stated that developing an adaptive mindset was a critical component of deeper learning. Rick Nason agrees, suggesting that the adaptive mindset is essential to succeed within our current environment that boasts an insatiable appetite for complexity. Rather than be discouraged by seemingly unmanageable problems, Rick believes that complexity can present advantages to the astute manager.

Rick Nason explains:

In a complex environment, it is truly rare that a grand plan or strategy will work as intended. Successful managers, however, are not discouraged by this. They learn from their missteps and use their learning to move forward with a new angle on the problem. They essentially learn as they go. Furthermore, they expect to learn as they go.

Complicated thinkers tend to get too intellectually invested in an idea and refuse to let go, despite sometimes overwhelming evidence that the plan is not working. Complexity thinkers have the humility and flexibility not to get trapped into this low-probability strategy. With a try, learn, and adapt approach, organizations have to allow for mistakes to be made and for risks to be taken. They do not take large bets on grand projects or get too invested in comprehensive plans. A key characteristic of complexity is adaption.

To succeed with complexity, an organization must also be continually adapting. It is important to note that this does not necessarily mean getting better or continually improving. It is quite possible to keep continually improving on all of the wrong things. Kodak continued to improve its film products, but when digital photos replaced film, all of the continual improvement was for naught.

Adapting means developing a keen sense of how elements of the system are changing and trying new ideas to see how they work in the context of shifting environment. Ultimately, adapting means changing along with the environment rather than trying to get the environment to change. (Excerpt taken from It’s Not Complicated – The Art and Science of Complexity in Business Pages 96 & 97)

Steen Madsen, Investment Advisor, RBC Dominion Securities graduated in the MBA (FS) Class of 2016. In a recent virtual interview with CFAME Connection, Steen reflected on his academic journey, offering profound insight into the opportunities and challenges facing those involved in life-long learning.

Steen Madsen:

To be honest, I had the thought of attaining an MBA for 20 years – a bucket list item if you want to call it! The MBA (FS) program offered rich academic content with a high degree of real-world learning supporting the entire program. I wanted education that went beyond my industry, which would allow me to explore other career opportunities beyond banking.

As Rick Nason would say, I embraced the spirit of emergence when I decided to enroll in the MBA(FS). Working within banking and wealth management roles, requires that I must continually adapt to a changing environment both in the market place and within an evolving organization. Studying alongside other industry participants provided new perspectives which inspired me to move forward personally as well as professionally.

Timing the markets or attempting to time the markets is never a proven success; however, I believe that life goals in relation to timing is crucial. For me, it was the right time to take that next-step towards an MBA. Having career and life experience when I entered the MBA(FS) program broadened my learning capacity, positioning me to legitimately contribute within an academic environment. My favorite part of the MBA (FS) program was the intensives. In those three or four days, I learned alongside other industry-experienced students committed to life-long learning

For someone just starting the MBA program, time management will be critical. Use your existing scheduling skills to their fullest and learn to block chunks of time to get the work load and studying done. Use this time wisely, not only to achieve a mark, but to gain knowledge. Integrating an academic journey into the reality of family life and career responsibilities requires a thoughtful approach. The first step starts with a scheduling dynamic that is backed by family permission to spend the hours to get each course done. When I started the program, my daughter was 3 years old; when I graduated, she had turned seven. This meant that her entire memory and impression of her Dad throughtout that time was of me studying in my home office. During those years, there was a shift in philosophy of what is important, that learning for the sake of acquiring knowledge was the ultimate goal.

When I received the letter of acceptance, “congratulations, you’re in.” I bought a Dal sweatshirt. I wore that same sweatshirt for each and every intensive exam, the entire length of the program (4 years), kind of like a lucky charm. Hah, it worked! Believe it or not, I wasn’t the only one to do that!

My next challenge is back to studying. This time a must because it is my insurance licensing which will be a small part of my wealth management business going forward. I still balance work hours with family life because my kids are 8 and 11 and between homework-help and activities there is little time other than the odd NFL game or UFC fight to watch. I really enjoy being a Dad and the time I spend with my children is a blessing. I appreciate every moment – they are only young once!

Choosing to pursue and MBA(FS) was by far the smartest educational and professional choice I have ever made. What I learned and the activity of learning, has shaped the way I adapt and engage.

Integrating life-long learning presented balance and scheduling challenges, however with the amazing support of my spouse and three young children who were then ages 14, 13 and 9, my academic journey was memorable and life-changing. During my MBA studies, I continued coaching my children in sports and remained involved in community activities, which included running a winter ice rink that needed flooding every evening in the winter. I have fond recollections of sitting in my truck, reading about accounting and statistics while waiting for the ice to freeze up for a second flooding. There were many nights of falling asleep on the couch while reading, waking up with a textbook in my lap; even more common, an espresso every night to extend my study time a bit more.

My son, who recently embarked on an MBA asked me how I had found time to study. My answer was simply you just find a way. The same can be applied to thriving and growing within a dynamic work environment. Be adaptable, think and plan ahead, and challenge yourself every day. Ask lots of question and listen well to truly understand. Make friends and connections, not because it looks good on a LinkedIn profile, but because surrounding yourself with great people is rewarding. Collaboration offers invaluable learning opportunities.

I agree with Rick Nason that “Emergence can be either intimidating or inspiring to the manager.” Our role, as current and future leaders, should include a commitment to lifelong learning so we are inspired by it, and we find ways to inspire others. Being able to embrace “weird…unpredictable…uncontrollable” experiences, to find new and creative ways to enhance and adapt businesses for long term success, is a key differentiator for any successful team. I am inspired by Rick’s book, “It’s Not Complicated, The Art and Science of Complexity in Business.” Rick describes “emergence” as a paradigm shift and learning is key to help us embrace it, be enlightened by it, and lead our own development, imagining what it might look like, nudging it along the way.

So, what comes next? Convincing senior leaders to envision and create an environment where it’s safe to abandon frameworks. Imagining how emergence will create transformative outcomes will set in motion a self-perpetuating cycle of unpredictable success. Sounds like a great deal of complexity…it’s not complicated…and that’s exciting.

I could not have imagined, as a graduate of the class of 2010, how differently I would feel and act as a result of the remarkable professors and students I had a chance to meet during my MBA journey. Even now, the connections, social interactions and experiences of those years continue to influence me, personally and professionally.

My next challenge may be another master’s degree in education. I had the privilege of teaching a course at Seneca College in the School of Accounting and Financial Services and absolutely loved the opportunity.

The future is bright; I cannot wait to experience what’s next as I continue to embrace the emergence.

Rick Nason in “It’s Not Complicated: The Art and Science of Complexity in Business” contends that in a modern business context, complexity appears in many places: cyber security, financial markets, economic turmoil, demographic shifts, social media activity, politics and marketing. Complexity is also present in the daily activities of managers as they manage their teams, their clients and even themselves. It is essential that we explore life-long learning to progress in our personal lives and career pathways.(Excerpt taken from It’s Not Complicated – The Art and Science of Complexity in Business Page Preface xi))

How does life-long learning influence our participation within an ever-changing, mercurial global world?

Blog Coordinator’s note: CFAME Connection is currently searching for ways to bring podcasts and video panel discussions to our blog. In the interim, please join the dialogue by adding your comments. We would love to hear from readers.

Shauna Wakeman:

Life-long learning has been a defining influence and, in many instances, has changed the trajectory of my personal and career objectives.

During my MBA studies, I found myself even more intrigued to branch out, learn more and apply my new skills. I accepted a new position as a senior consultant that required travelling away from home five days a week, venturing to new cities far from home each quarter. I would hop a plane and come to a new destination, on my own, renting a car and travelling through an unfamiliar area. These trips presented opportunities to meet and work with a new group of people. I found that my MBA learnings complemented my role as a teacher and mentor. I enjoyed sharing knowledge to help people who, in turn, increased their individual capacities.

Each quarter, when I shifted my attention to a new location, I would also begin a new course in my learning journey which would open my eyes to a new area of knowledge and a new approach at work.

Rick Nason:

Shauna describes the concept of the Renaissance person, a vital element required to cope within an increasingly connected world that is becoming more complex. The need for individuals whose knowledge and interests range across a variety of fields and disciplines is greater than ever.

Successful organization will be those that develop a Renaissance mindset. Organizations must actively promote diversity, not only of culture but also of mindsets, if they are to compete successfully in a complex environment. They must proactively train people in different knowledge and skills sets. They must recruit from a diversity of background and from different fields of knowledge. They must work to cross-train managers more than they are currently doing. The challenge of management lies in allowing diversity to function – tolerating and even welcoming differences; it is the only way that an organization can grow and learn.(Excerpt taken from It’s Not Complicated – The Art and Science of Complexity in Business Pages page 110)

Shauna Wakeman:

I agree with Rick that engaging within a learning environment offers opportunities and fresh perspectives on how to participate within complexity. My educational journey expanded my travels and networks both personally and professionally.

During my MBA, I traveled each semester to a new city to take part in the intensives: Vancouver, Calgary, Toronto, Halifax. My Toronto intensive was the first time I had ever been to Ontario. (I lived in B.C.) In the final year of my MBA journey, I packed up and moved my entire family across the country from B.C. to Ontario to begin a new chapter in my life and take on a new challenge in my career as a District Manager. This type of move is something we would never have dreamed of or even entertained before beginning my MBA. The relocation has brought great changes and possibilities to my family, for which we are all thankful.

Rick Nason:

Shauna’s experiences confirm that working within complexity can be fun. Indeed, successful managers will learn to have fun with complexity.

Complex systems cannot be mastered. They are a continually evolving and emerging portfolio of activities. This implies that the manager’s style needs to be continually evolving as well. Complexity is a reality. It is a fact. It is not a fad, and it is not going to go away. It is not going to diminish in importance; it is only going to grow in importance. (Excerpt taken from It’s Not Complicated – The Art and Science of Complexity in Business Pages page 115)

Shauna Wakeman:

I agree with Rick that we must be willing to continually evolve. I feel like there is no limit to where we can go or what we can do if we take that next step to try something new. This spirit has been passed down to my two sons, ages 10 and 12, who have learned from watching my transformation. They attend university education camps in the summer (even though they are both still in elementary school), and do not feel tied down to one city or one field of knowledge. I am happy knowing that they feel they can chase any dream. I look forward to watching them learn and grow following those ambitions.

Shauna Wakeman MBA(FS)2016, General Manager at CIBC, recognizes the extraordinary potential of emergence, as discussed in Rick Nason’s book “It’s Not Complicated – The Art and Science of Complexity in Business.” Rick Nason argues that while emergence cannot be directly managed or predicted, it can be imagined and be put into place by an enlightened manager.

Shauna imagined possibilities and worked within a complex environment to achieve remarkable results, personally and professionally.

Shauna knew she would embark on an MBA journey. She prepared by searching for opportunities that would yield invaluable insight and diversity of experience.

I dedicated four years to my MBA(FS) studies, Shauna wrote in a recent e-mail to CFAME Connection. Those years were probably the most interesting and exciting years of my professional life. I tripled up raising a family, working full time, and furthering my education.

I believe that always knowing that I would one day take on the challenge of an MBA, influenced my decisions long before I started. I found myself accepting additional projects and responsibilities to expand my knowledge. I looked for opportunities to embrace new challenges.

Planning and timing were critical in taking my education to the next level. Balance between family, work and studies was essential. I waited for my youngest to be old enough to start school before I applied to Dalhousie’s CFAME MBA(FS) program. In the interim, I enrolled in courses via the CSI learning path to earn MBA credits before I formally started. I obtained FMA and CIM designations along the way.

The MBA program increased the interactions between studies and my career path. With each new course, I found ways in which to connect my learnings to my “on the job” activities. Marketing encouraged me to explore my own company on a deeper level. Information Technology Systems instilled a greater understanding of the digital movement. The capstone course, Strategic Leadership and Change, presented a high-level overview that brought the learnings together.

I found each course tied into my career in a new, engaging way; and I used those learnings to apply my knowledge in how I did my job and how I taught others.

As a graduate, I continue to expand my knowledge, network, and the geographic footprint of where I live, work, and play. I feel there is no limit to where we can go or what we can do as long as we take that next step to try something new.

The Oxford dictionary defines emergence as “the process of coming into view or becoming exposed after being concealed.” It comes from Medieval Latin: emergentia which signifies “bring to light.”

Over coffee which stretched across a morning, Rick shared how emergence is a paradigm-shifting way of thinking within a world that thrives on complexity.

Rick Nason:

Emergence arises out of connections and social interactions. These social interactions could be internal to the organization, or external, between the organization and its industry or even between the organization and the larger economy. Emergence itself cannot be directly managed or predicted, but it can be imagined, and the catalysts to allow emergence can be put into place by an enlightened manager.

Emergence can be either intimidating or inspiring to the manager. It behaves in weird and unpredictable – as well as uncontrollable – ways. Emergence cannot be controlled, but perhaps it can be nudged. Being aware of emergence and being willing to work with emergence rather than fight it are key. However, doing so requires managers to be sensitive to the broader context of business operations and willing to abandon rigid frameworks and strategies that do not allow for the company to quickly change course. (Excerpt taken from It’s Not Complicated – The Art and Science of Complexity in Business Pages 112 & 113)

When we said our goodbyes, Rick agreed to engage in a CFAME Connection dialogue that explores how life-long learning positions us to recognize and exploit the advantages emergence offers.

Stay tuned! We invite you to share your insights in this upcoming dialogue.

Dr. Rick Nason may be on sabbatical until June 30, 2017, but his schedule has not experienced any slowdown. With two new books scheduled to come out in the next few months, Rick’s days are fully “booked” (pun intended).

CFAME Connection reached him on location in Illinois to gain perspective on the challenges that face leaders in the next five years, such as shifting work patterns and additional compliance.

“Predicting the challenges that face leaders in the next five years is tougher than predicting the weather and a much tougher task than any other point in history.” Rick advised with his usual wit and clarity.

“I think there are three main challenges – the need to understand complexity as opposed to things that are complicated, something on which I have a vested interest as I have a book coming out on the topic in this month, the ability to be flexible combined with the ability to deal with the uncomfortable and the unfamiliar; and finally, a new appreciation for risk taking and risk management. Again, a bias as I have a book on new ideas for risk management coming out in August.”

“It’s Not Complicated: The Art and Science of Complexity for Business Success” published by the University of Toronto Press, is scheduled to make its debut this month and can be ordered through Amazon.ca.

I have given lectures on the topic of “It’s Not Complicated,” and realized the need to provide a comprehensive review of my findings,” Rick explained. “In the new knowledge economy, traditional modes of thinking are no longer effective. Compartmentalizing problems and solutions and assuming everything can be solved with the right formula can no longer keep pace with the radical changes occurring daily in the modern business world.”

It’s Not Complicated: The Art and Science of Complexity in Business

Stay tuned for more from Rick Nason. He has promised to provide more insight into his book coming in August. Meanwhile, we wish Rick all the best when he takes a well deserved vacation coming up in a few weeks.